US President Donald Trump announced that the country will impose a 25% tariff on imports from Canada and Mexico starting from February 1. He emphasized that the decision to tax oil imports from the neighboring countries is still under consideration.
Trump had previously vowed to introduce comprehensive tariffs on Canada, Mexico and China as soon as he took office. The president cited illegal immigration, drug trafficking and a growing trade deficit as the reasons for this step.
In a press conference at the Oval Office on Thursday, Trump reaffirmed these intentions and set a deadline of Saturday for tariffs on imports from the US’s two closest neighbors, stating that the level of these tariffs “will increase or not” over time.
“I will impose a 25% tariff on Canada and a separate 25% tariff on Mexico” he said, adding that the US has a significant trade deficit with the two countries.
The president also mentioned that the introduction of tariffs on oil imports from the neighboring countries will depend on the prices and whether the two countries “treat us fairly.”
“We will do it or not” Trump said in response to a question about taxing oil imports. “We will likely make this decision tonight.”
Earlier in the week, Canadian Foreign Minister Melanie Joly expressed “cautious optimism” that diplomatic efforts to avoid the tariffs might still bear fruit, but added that Ottawa is prepared to retaliate if the White House imposes the tariffs. Bloomberg reported that Canada has compiled a list of US goods worth $105 billion that could be targeted with tariffs if the Trump administration follows through with this drastic step.
In November, Mexican Economy Minister Marcelo Ebrard warned that the new tariffs would severely impact US automakers that produce in the country.
“This will hit companies like General Motors and Ford, which build 88% of the pickups sold in the US” he said in reference to the looming tariffs.
In his last press conference, Trump mentioned that his administration is also considering new tariffs on Chinese goods and mentioned China’s alleged role in the production of fentanyl, a deadly synthetic opioid. Trump threatened to add an additional 10% import tariff on all Chinese products, on top of the tariffs already imposed in 2018 and 2019, which led to a nearly three-year trade war with Beijing.
In November 2023, former US President Joe Biden and Chinese President Xi Jinping agreed that Beijing would curb the export of goods linked to the production of the opioid.